Ally Financial joins the zero commission bandwagon

Ally Financial Inc.’s
online brokerage and wealth management arm Ally Financial Inc. said Friday it was jumping on the bandwagon by cutting commissions to zero, from $4.95 per trade, starting Oct. 9. “With continued advancements in technology making online trading increasingly more cost-efficient, it was inevitable our industry would reach a point where self-directed investors could participate in the market for little to no cost,” said Ally Invest President Lule Demmissie. Ally’s move comes after rival Charles Schwab Corp.
caused a stir earlier this week by dropping commissions, prompting fellow rivals E-Trade Financial Corp.
and TD Ameritrade Holdings Corp.
to do the same. Ally’s stock rose 0.3% in midday trading, and has gained 0.5% over the past three months while the S&P 500
has slipped 1.9%. The stock had dropped 5.2% in two days after Schwab’s announcement, before bouncing 0.2% on Thursday.

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